“Sweetening is not required”- Anil Agarwal on Cairn India merger deal
Cairn India might merge with parent company Vedanta Limited and by looking at the former shareholder’s status in the market, the Chairman of Vedanta Group, Anil Agarwal is hopeful that the organisation need not have to offer something additional with the merger offer to make it more appealing.
UK based Cairn Energy plc runs its business by promoting Cairn Indian, which holds approximately 10% interest in the oil explorer and its minority shareholders disagrees with the 1:1 share swap been offered to them.
On the other hand, Agarwal told the concerned media authority that the merger process might take place in approaching months and he is hopeful that ‘sweetening is not required’, as he said while clarifying that the same is not in his hands.
The Vedanta offered one Vedanta share to minority shareholders for each share they hold in Cairn India, in which they showed no interest at all. The reason behind this unanimous disagreement is their preference to hold some shares in an energy company rather than a distributed resources group.
With Vedanta holding upto 60% stakes in Cairn India, LIC is the second largest minority shareholder in the latter company which showed reservations about the deal. LIC and Cairn Energy control almost 19% of Cairn India.
4 years back, Vedanta Group acquired more than 58% controlling interest in Cairn India where only 20% belonged to Vedanta Limited and rest of the shares are controlled by Twinstar Mauritius Holdings Ltd, which is an ancillary unit of Vedanta Resources plc (VED).
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